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on January 1, 2018 ABC corporation issued a five-year $1,000,000, 7%, at $1,050,000. Interest is paid annually on December 31. The market rate of interest
on January 1, 2018 ABC corporation issued a five-year $1,000,000, 7%, at $1,050,000. Interest is paid annually on December 31. The market rate of interest is 6%.
a) using the effective interest rate method, what is the interet expense at December 31, 2018?
interest expense at december 31, 2018:
b) what is the carrying value of the bond at december 31, 2018?
carrying value of bond on decmeber 31, 2018:
c) what is the carrying value of the bone at january 1, 2023?
carrying value of the bond at january 1, 2023:
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